Thailand is becoming a hub for tech investors who have typically looked to Indonesia or Singapore for market entry, as detailed in Techsauce ‘Thai Tech Startup’ report. The co-founder Amarit Charoenphan comments,
Thailand’s solid infrastructure, business stability and low operating costs make it a perfect storm for startups.
Countries such as Indonesia often get a lot of investor attention because of the vast demographic and Internet penetration. However, it is still a very underdeveloped landscape with one of the lowest credit card penetration rates in ASEAN at 6%. Despite Thailand experiencing two government overthrows in the last six years, the country has experienced 29x growth in startup investment since 2011.
Key highlights about Thailand’s investment landscape:
- The number of Thai startups has risen 29 times over the past four years
- Funds raised by Thailand based startups shot up to over $108 million from just $2.1 million in 2012
- The biggest investment round by a startup in 2012 was $2 million. As of June 2016, that number reached $15 million, raised by B2C ecommerce site Orami (formerly Moxy)
- There are 60+ Venture Capitals and Corporates currently investing in Thailand, compared to just 1 in 2012
- $150 million estimated in M&A since 1998, but only $37 million disclosed. This includes Orami and OLX Kaidee
- The rate of total disclosed funding has also risen considerably, from $1 million in 2011 to $108 million in 2016
The full version of “Thai Tech Startup Ecosystem Report Q2” can be found here.